Causes of failure among Malaysian female entrepreneurs

Abstract

Purpose This paper aims to explore the specific causes of failure among Malaysian female entrepreneurs who were provided with financial services by the microfinance institution: Amanah Ikhtiar Malaysia (AIM) to start up their own businesses. Design/methodology/approach This paper adopts a qualitative-based case study design approach, with data collected from a total of 18 female entrepreneurs who had failed to develop their businesses. In-depth personal interviews were conducted, coupled with personal observation via purposive cum snowball sampling. Findings Thematic analysis revealed a pattern-based outcome which discloses a variety of causes affecting the failure of Malaysian female entrepreneurship. These causes ranged from inter-related external factors which were perceived as beyond their control, such as personal life events, intensive competition and loan inflexibility to internal causes, which were related to lack of resources, poor financial management and personal dissatisfaction with their own business performance. Research limitations/implications The findings of this study provide valuable information for Malaysian economic policymakers in how to practically address the objectives of the National Women's Policy (NPW) and improve the innovative quality of their products and services. A thorough understanding of the specific obstacles facing female entrepreneurs in Malaysia is essential if policymakers are to improve opportunity exploitation efficiency and assist in mitigating the external and internal causes of business failure among Malaysian females. Originality/value Studies in this field have demonstrated that most new “start-ups” fail within three years of their establishment. While determinist, emotive and voluntarist theories can often provide an adequate explanation for the causes of business failure, it is clear that no single factor is usually responsible. Rather, multiple interrelated factors are found to be at play. This study, therefore, provides an integrative model for causes of business failure among small-business female entrepreneurs. It also represents one of only a few such studies in the literature and, to the best of knowledge at the time of writing, is the first such study that used an integrative approach to explain the causes of business failure in the Malaysian context.

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“…Walsh and Cunningham (2017) attributes the failure of entrepreneurs to inexperience, lack of financial commitment, difficulty accessing finance resources. Al-Shami et al (2019) attributes the failure of Malaysian female entrepreneurship to personal life events, intensive competition and loan inflexibility, lack of resources, poor financial management and personal dissatisfaction with their own business performance.…”